Bank of America sells exec's house for substantially less than asking price

Bank of America, the biggest U.S. home lender, sold a home for its top housing executive for 44 percent less than its initial asking price set last year, property records show.

Barbara Desoer, head of the bank's home-loan and insurance unit, put her 4,500-square-foot house in Charlotte, N.C., on the market Aug. 1, 2008, for $1.675 million. The home sold on Nov. 22 for $930,500, according to a Multiple Listing Service report.

Desoer, who bought the home with her husband in 2000 for $1.15 million, moved from Charlotte after being named head of Countrywide Financial, which the bank acquired in July 2008. Her Charlotte home was sold to Bank of America in December 2008 through a relocation company. The property went on the market at about $1.3 million.

The U.S. real-estate market is showing signs of improvement though demand for luxury homes remains sluggish because of increasing job losses and tighter lending standards. Home prices in 20 U.S. cities, including Charlotte, rose for a fourth straight month in September, according to the S&P/Case-Shiller home-price index, while sales of existing U.S. homes in October reached their highest level since February 2007, the National Association of Realtors said.

Desoer declined to comment, Bank of America spokesman Dan Frahm said.

Bank of America, based in Charlotte, will cover costs associated with the sale of the house, including a possible loss, plus $1.5 million for Desoer's new home in California and $1.1 million related to taxes, according to the bank's March 2009 proxy.

Bank of America officials in September cited Desoer as one of six potential internal candidates to succeed Chief Executive Kenneth Lewis, who is retiring Dec. 31. Chief risk officer Gregory Curl and retail banking head Brian Moynihan are the most likely insider candidates to win the post, according to people familiar with the situation.